I sat down with first time buyers last night. After I scheduled the appointment, when I thought about it, I
I realized that I hadn't met with first time buyers in a long time. I do a lot of listings and move-up buyers, so my clients in general have been through the process and understand how it all goes.
As I planned my presentation, I started to remember what it was like to know nothing about Real Estate or Real Estate transactions, and what that felt like. I was reminded of when I bought my first house, without representation, without a Realtor. I didn't have the benefit of the help and guidance of an experienced professional. I made it through, but I thought I was getting a really great deal. It turns out that it was just ok.
You may have heard that in the entire body of knowledge, there are things you realize you know, and there are things you realize you don't know, but there's a huge amount of information that you don't realize that you don't know. This is especially true for Real Estate.
First time buyers will admit that there's a lot that they don't know. And there's a wealth of information available on the internet for them to educate themselves. For example, last night, as I was explaining the basics of financing, my Buyers wanted to know what points were (and no, this isn't just a loan officer's job to explain). This was something for which they could have easily just looked up the definition. I'm glad they didn't, though.
It's up to us as Realtors to explain the things that Buyer's don't realize that they don't know. So I did explain to my Buyers what points were, but more importantly, I explained to my Buyers how they might use this information to their benefit in the negotiating process. I could tell by the expression on their face that having the information and being able to use it to their benefit would make all the difference in their confidence in my ability to guide them through the transaction.
Have you ever had a situation where you came up short of reaching your goal because of something you didn't realize you didn't know?
Tim McIntyre, GRI
tmcintyre@cbmove.com
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Ellicott City Realtor, Catonsville Realtor serving Howard County, Carroll County and Baltimore County for more than 25 years.
Yes, I am sure I have been in that situation, but at the time I am sure I didn't know it. =)
I offer a first time buyer class free of charge with lunch included to new ones to the process along with my lender. She cooks for us! :-) And then our clients get fantastic and much needed education on the whole home buying enchilada!
Absolutely!
One individual cannot possibly know everything! And the best attitude is to realize what we don't know , but be aware of where to find the information when we need it...
On the other hand, when dealing with clients, especially first-time home buyers I find it best to assume that their knowledge of the buying process is very basic so I like to explain every details to them. They can always stop me by saying they know about it. It is better to be giving too much information than to leave out something important out!
Tim, Good to hear a Realtor putting himself in the shoes of the Buyer.
Excellent thought provoker! Helping the first time homebuyer understand the whole buying experience.
Tim:
The meeting with first-time buyers is usually a long one. You have to take yourself back to the point of not knowing anything about a home purchase. This includes financing, the actual search process, home inspections, home warranties, lead paint, agency disclosures, property valuations and more. This is a more in-depth meeting and is always appreciated by the buyer because it is so educational.
Tim: Thanks for sharing your insight. It's refreshing to be reminded to truly listen to our clients so that we can better help them.
Tim,
It is hard NOT to take some knowledge for granted! We live real estate day-in-day-out, so you're right that we need to take a big step back. Conversations instead of lectures help. I also try not to cover every aspect at the first meeting. Info overload!
Thanks for an important reminder to us all.
Thanks Tim. Great reminders to us all to never thing we have all the answers!
kp
Great post, there is so much out there we can't know everything. It is very easy, in a business so full of rejection, frustrations and difficulties for agents to build little walls around themselves, never venturing outside their comfort zones. People need to do that more often!
This so rings true in so many different situations, not just real estate. But to know that you don't know, and try to find out so that you can pass on that knowledge to others, that's being good at whatever you do.
Tim - it's funny...everytime I start working with first time homebuyers I have to remind myself of this!
Tim: Thanks for the post. I appreciate it! I think it's always ok for us to take a step back and admit we don't know it all. It's applicable to everything we do in life and can actually help us continue to learn. Thanks again!
Tim, I've had too many circumstances where I thought I knew more than I did, ha. That is the nature of learning. I've worked with several first time buyers (as a younger agent, it fits well in my demographic). There is so much information that buyers need to know, even the simplest of details must be addressed. That is one thing I love about this business... you'll never know it all; there is always something new to learn (or relearn for that matter). My dad always says... if you ever reach a point where you've learned everything you need to know about your profession, it's time to stop practicing.
it is good to always see through the eyes of the prospect. If your not on the same page you dont get a deal
have a great day
tony
Great thoughts Tim. We need to humble ourselves and admit there is much we don't know and not be ashamed to ask for help. In my insurance business, I deal with "first-time homeowners insurance" buyers and the process you described is the same. they want someone to not just quote a policy but explain the process and walk them through it.
Wonderful post Tim. You mention that they could have researched their questions on the internet but you're happy they didn't. We're happy too because their chance of getting the correct answer on the internet is probably 50/50 and maybe less for an inexperienced first time buyer.
It is hard to put yourself into their mindset, but important. And what they expect of us is a lot more than, how much are they asking for this house?
If you are a great buyers agent then you take the time to educate your buyers first and foremost. When you do that they are more loyal and respectful of what you did for them down the line.
I began doing a "Buyer's Consultation" just this year and it has made a huge difference. We do take for granted the knowledge of our buyers.
Hi Tim, Great points ! We work with a lot of out of area buyers so I make it clear how our market works and how the paper work and " mail away " closings work. Hope your Holiday Season is the best ever !
You said it: What you don't realize, you don't know!
Absolutely!
There's been a few blogs recently about dual agency. Think "they" (John & Jane Q. Public) realize??
I have found that putting myself in my clients' shoes always helps the transaction run smoother. Real Estate comes easy to me because I have been living and breathing it for 30 years.
I try to cover most of the things that might come up along the way upfront. As the process goes on things arise naturally and I'll walk the buyer through it.
Patricia/Seacoast NH
I work with many first time home buyers and my overall philosophy is to explain everything in great detail at the first meeting. This makes the first meeting long and I do understand that they may only absorb 20-25% but is establishes a foundation so that I can re-enforce specific activities and duties as we move through the process. Basically I treat them as I would treat my own daughter or son in the very important and overwelming experience for them.
First time buyers always have a ton of questions and concerns as they go through the process. It's part of our job to answer them and help them feel comfortable, or as comfortable as possible, with the process.
We have all been there Tim. Some Buyers do not have a grasp of the most basic concepts in buying a house. I love to see thier eyes light up when they understand something.
Thanks for all your comments and ideas they are great. Happy Holidays to all